ESS finished and layoff coming


Under the Anti-epidemic Fund of the HKSAR Government, the Employment Support Scheme (ESS) had two phrases, June to August and September to November this year. Companies accepting the ESS subsidy cannot cut jobs during the period. Therefore some enterprises such as Cathay Pacific didn’t apply for the second phrase. The ESS completed on 30th Nov and layoff news arrived next day.1 Except the anti-epidemic fund launched in early time, the government hasn’t provided further measures to boost the economy. The market expects a layoff wave at the end of the year.

From time being, the HKSAR Government may excuse the inaction with opposition party friction. However, after series of political storms, there is no more opposition in the legislature nor active civil movement. The Government should have no more reason to avoid the issue: layoff is coming. Not only epidemic-free mainland China, but also the West in serious condition, the governments take all action to help the economy. Nevertheless, the SAR Government focuses more on long term infrastructure than the economic crisis ahead.

Help ourselves with Government subsidy

Without indication of any government assistance, private firms must take action to preserve. Besides the 100% government-backed loan, regular government subsidy can also help increasing cashflow. For example, the BUD Fund provides at most 75% of total subsidy as initial fund. If a project is with a budget of $2 million, the government subsidy will be $1 million (one-on-one basis). Therefore the applicant can receive $750,000 as project fund once the application succeeds. It is absolutely important to most SMEs. Capital is the blood of business.

Consultancy helping firms to apply for Funds

The objective of establishing government funds is to increase Hong Kong company competitiveness, but applicants have to deal with many administrative problems. First you have to read the dozens-page-thick BUD Application Guide. And you have to provide sufficient quotations for TVP application. Manpower is the most precious asset of a company, and I prefer my people working hard in the core business to reading the application guideline. This is why we should hire a government subsidy consultant to help. BizMagnet consultancy is experienced in assisting clients to apply for government subsidy. From assessment to authority management, we give the best to our good clients. If you agree with us and you need government fund, please contact BizMagnet.

  1. Workforce in turmoil at Hong Kong’s largest pay TV operator i-Cable as lay-offs, resignations hammer news department, https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3112036/hong-kongs-largest-pay-tv-operator-i-cable-lay-40

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